GCA finds Tesco breached Groceries Code on Payment Delays

Tesco told to introduce significant changes to its practices and systems

Christine Tacon, the Groceries Code Adjudicator (GCA), has found that Tesco has seriously breached binding requirements of the Groceries Supply Code of Practice (the Code) that require it to pay suppliers in accordance with contractual terms and in any event within a reasonable time.

The GCA has required Tesco to introduce significant changes to the way it deals with payments to suppliers, including stopping Tesco from making unilateral deductions from money owed to suppliers, requiring it to pay for goods delivered in accordance with agreed terms, promptly resolving data input errors, and providing transparency and clarity in its dealings with suppliers. In addition, Tesco's buyers and finance teams must be trained on the findings of the investigation.